BHP Billiton, the multinational mining company, has been hit with a £1.3bn bill following changes to corporate tax law in the US.

The expense, which will be treated as an exceptional item, will consist of a $898m non-cash charge on deferred taxes and a $843m charge on foreign tax credits.

The mining company said that the lower corporate tax rate will benefit its U.S. attributable profit in the longer term.

BHP Billiton said a lower corporate tax rate will help its U.S. profits going forward

The company's share price has not been significantly moved by the news, rising 1 per cent to 1520p.

BHP Billiton's first-half results are due on February the 20th. In its second-quarter production report last month, the company had hinted at a charge arising from the lowering of U.S. corporate taxes.

The mining company has recently come under pressure from activist investor Elliott Advisors, which owns a stake in the company.